These 3 Red Flags on Your Tax Return Could Increase Your Chances of an IRS Audit, Experts Warn
Everybody hates the thought of undergoing a tax audit. Fortunately, nearly nobody ends up getting audited. In 2021, only 0.2% of tax filers with incomes below $1 million received an audit notification from the Internal Revenue Service. based on the latest IRS Data Book That's approximately 1 person out of every 500. People who undergo audits often commit particular yet frequent errors that catch the attention of the IRS. Below are three such errors to be cautious about along with steps to prevent them. 1. You fail to disclose all of your earnings. Should your earnings come from various origins, the IRS requires you to declare every bit of it. If anyone gives you funds throughout the year—from bosses to investment companies—they send records like W-2s and 1099s right to the IRS. Should your tax filing not align with what the IRS has received, it might trigger red flags, warns Daniel Geltrude, a certified public accountant and the founder of Geltrude and Company L...